16 Apr Americans Spend $48 per Month on Video Streaming Services — and Half of Those Surveyed Say That’s Too Much [Variety]
BY TODD SPANGLER
April 16, 2023 | “Subscription fatigue” among consumers is only getting worse, making it even more challenging for direct-to-streaming video providers to retain customers, according to Deloitte’s latest Digital Media Trends survey.
As streaming video competition continues to intensify, subscription growth rates across the industry have slowed — and churn rates have increased, according to the Deloitte’s 17th annual Digital Media Trends report. On average, U.S. consumers pay $48 per month for subscription-video services, Deloitte’s survey found. About half of those surveyed agreed that they “pay too much” for SVOD services, while about one-third said they intend to reduce their number of entertainment subscriptions.
It’s the first time Deloitte’s Digital Media Trends survey asked respondents to put a dollar figure on their subscription-video spending. The number of SVOD services per U.S. household has held steady at around four for the last several years, while the rate of inflation has outpaced the sector’s price increases, according to Kevin Westcott, Deloitte’s U.S. technology, media and telecom leader.
In general, consumers are looking to cut back on SVOD because of cost-of-living increases, Westcott said: “When the price of fuel, food and housing go up, people are rethinking their discretionary spending.”